They are essentially making you, the buyer, aware of the situation/defect so that moving forward you understand the issue and to not bring this item of repair up during negotiation.

Obviously there are more items to consider when refinancing like interest rate, term of the new loan, long term strategy of existing property and new property, cost of refinance, etc... but the above is how I would think about refinancing at a high level.

@Seokwoo YoonA refinance in of itself is not a taxable event.However, there are some items with a refinance that effect your taxes in the future.Closing costs / lender costs may be capitalized.Prior lender costs can be immediately written off.Interest tracing rules need to be factored in for deductibility of additional funds received.

As a follow-up,  this is definitely a lawyer item but for reference,  this article may be a good start for some additional perspective.   

As @Brian Pownall mentioned above, Dax over at Heritage Construction has a great tool to help with Cap Ex items during the underwriting stage.

When it comes to rehabs, I've found there are very few items that add more value than they cost to put in.

If there’s another reason then NM and carry on. 

the list of items from the inspector will cover any deficit. 

I know the places to go around here for deeply discounted items like vanities, cabinets, appliances, light fixtures, etc.

That would leave us money for carrying costs.